BP and Verenium Corporation announced this morning that the two companies are partnering to accelerate commercialization for cellulosic ethanol. The partnership will create several cellulosic ethanol production facilities in the U.S., and potentially worldwide.

"In partnering with Verenium, we now have the most advanced technology for transforming these energy grasses to biofuels, increasing our ability to invest earlier in the US to meet the requirements for cellulosic ethanol laid out in the recent energy bill. We also have the possibility of enhancing the productivity of our Brazilian assets. Verenium has already demonstrated the technology, making this real and an appropriate fit with our commitment to bring more sustainable biofuels to the market more quickly," said Sue Ellerbusch, the president of BP Biofuels North America in a press release.

Verenium has already done much of the work to create feasible options for cellulosic ethanol, but does not have the sheer infrastructure that BP brings to the table. Verenium will be receiving $90 million through this partnership, half of which is just to license their early work to the partnership, as well as to provide employees' knowledge and expertise. The other half will be disbursed monthly in $2.5 million chunks to fund Verenium's ongoing research.

Photo — Verenium